An observation

摘要

Credit Suisse has certainly replaced Deutsche Bank as the world's banana skin bank. It has had three serious debacles in the past two years: the spying scandal involving top executives; the biggest loss of any bank from the collapse of hedge fund Archegos; and costly exposures to now bankrupt supply chain finance provider Greensill Capital. Those three fiascos all point to serious failings in risk management, and a worry about culture. But the Swiss bank's failings around the Mozambique "tuna-fishing" loan and bond offers arranged between 2012 and 2016 and totalling US$2bn are in a different league. They arguably represent the worst misconduct uncovered at a major bank since the financial crisis (against some stiff competition). The scandal included bribery of government officials and contractors, and kickbacks for Credit Suisse bankers, including two managing directors; the bank repeatedly missing red flags about potential corruption; and failing to disclose material information to investors during a debt restructuring.